Bonneville Power Administration Initiates Expedited Rate Proceeding for CAISO Energy Imbalance Market Charge Adjustments

The Bonneville Power Administration (BPA) has commenced an expedited rate proceeding, designated BP-26E, aimed at revising its Ancillary and Control Area Services (ACS-26) rate schedules. This action, announced in the Federal Register on October 7, 2026, is specifically designed to accommodate the suballocation of new Neutrality and Uplift Charges and Credits associated with the California Independent System Operator's (CAISO) Energy Imbalance Market (EIM). The urgency of this proceeding is driven by CAISO's implementation of an Extended Day Ahead Market (EDAM), which, although BPA is not directly participating in EDAM, has triggered tariff changes affecting BPA's involvement in the EIM.

Context and Purpose of the Revisions

BPA's existing ACS-26 rate schedule already includes provisions for handling EIM Neutrality and Uplift Charges and Credits under section IV.D. However, CAISO's recent modifications to its Market Operator Tariff, spurred by the EDAM rollout on May 1, 2026, necessitate corresponding adjustments within BPA's framework. The BP-26E proceeding will update section IV.D of the ACS-26 schedules to ensure the accurate suballocation of these newly revised charges and credits. It is important to note that the scope of these proposed changes is strictly limited to this specific purpose and will not impact current transmission rate levels or power rates.

The Expedited Process and Proposed Settlement

Recognizing the need for timely implementation, BPA is utilizing an expedited hearing process for the BP-26E proceeding. This accelerated timeline is facilitated by the limited scope of the revisions and a proposed settlement agreement that has already garnered significant stakeholder consensus. BPA conducted public meetings in November and December 2025, followed by a settlement conference in January 2026. A proposed settlement agreement, circulated in February 2026, has received no objections from participants, paving the way for a streamlined review. The Administrator is authorized to waive certain procedural requirements to ensure the proceeding concludes swiftly, with a final Record of Decision targeted for no later than November 13, 2026.

Public Participation Opportunities

Despite the expedited nature, BPA has outlined avenues for public participation. A prehearing conference is scheduled for October 21, 2026. Petitions to intervene must be filed by October 22, 2026. Written objections to the proposed settlement and participant comments are due by October 23, 2026. BPA distinguishes between "participants" who can submit written comments and "parties" who have formal procedural rights and responsibilities. This distinction helps manage the volume and nature of public input while maintaining an efficient process.

Scope Limitations and Procedural Integrity

The scope of the BP-26E proceeding is rigorously defined to consider only the proposed revisions to section IV.D of the ACS-26 rate schedules. The Hearing Officer is directed to exclude any arguments or evidence challenging matters outside this narrow focus. Furthermore, strict rules regarding ex parte communications are in effect from the publication date of this notice until the Administrator's Record of Decision is issued. These rules prohibit off-the-record communications concerning the merits of the proceeding with Bonneville and DOE employees, the Hearing Officer, and the Hearing Clerk, underscoring BPA's commitment to a fair and transparent process.